Am I selling a file… or providing a service? 🤯
Before we dive in (and full credit to you, because this isn’t exactly the sexiest read of the month 😅), here’s a quick heads-up: what follows is my personal interpretation.
I’ve searched high and low for an official document that clearly settles the question: is a digital product (like a PDF sewing pattern, an embroidery design file, an ebook…) considered a product sale or a service?
And the official answer is… it depends. In other words: you’re on your own! 🙃
So, I went through legal texts, the French BOFiP (yes, that dreaded site where even the paragraph titles make you want to go gardening instead of reading), European decisions, tax guidelines… and I’ve pulled together a simple, clear and useful analysis for us, as creatives.
Coffee in hand, let’s take a plunge into the wonderfully messy world of creative taxation. ✨
Why does it matter? 💡
Because this isn’t just a boring bit of admin. Whether you’re selling a digital product or providing a service, it changes things like:
- Your business category (commercial vs service activity),
- How you declare your turnover,
- When VAT becomes due (if applicable),
- Consumer rights such as cancellations and refunds,
- Even how you draft your Terms & Conditions!
And if you’re a micro-entrepreneur not subject to VAT, you might think: “Well, I don’t care about VAT.” But actually… you should. 😏
Because VAT rules are a great indicator of whether what you’re offering is legally treated as a product or a service. Which makes this super useful to understand where you stand.
What counts as a digital product? 📁
A digital product is a ready-to-use file that requires nothing more from you once it’s sold.
You put it in your shop, someone buys it, downloads it, and that’s it – they can use it straight away.
Examples:
- A PDF sewing pattern for a boho midi skirt ✂️
- A digital embroidery design in .PES or .DST format
- An ebook to read in a cosy armchair
- A printable illustration pack
You created these in advance, they don’t change from buyer to buyer, and you don’t modify anything after the order. That’s what makes it a digital good.
And what about a service? 🧵
That’s where it gets trickier.
A service, under French tax rules, is when the work is done specifically for the client.
Even if the material comes from you, it can still be classed as a service. Just because you provide the fabric, the file or the ideas doesn’t automatically make it a product.
The real criterion: the result is designed or adapted at the client’s request.
Examples:
- Sewing a made-to-measure dress based on a client’s measurements
- Designing a custom logo from a detailed brief
- Personalising your PDF pattern with a child’s name or non-standard sizing
- Adding embroidered initials to a design upon request
In all these cases, the client is involved: they’ve given details, made choices, asked for customisation.
And in those cases, even if you deliver a file, it’s classed as a service.
The curious case of the ebook: when France fought for a file
For years, the EU considered ebooks as services, subject to the full VAT rate. France said: “No way!” A book is a book – whether on paper or in digital form.
After years of debates (and many sleepless nights for publishers), France won.
Since October 2018, a digital book has been legally treated as a product, exactly the same as a printed book.
Moral of the story: just because something is digital doesn’t mean it isn’t a product. If the file is ready-to-use, accessible to everyone, and requires no further input from you after the sale: it’s a digital product.
Quick recap table (because we all love clarity)
| Criteria | Digital Product | Service |
|---|---|---|
| Same for all clients | Yes | No |
| Created before the order | Yes | No (or modified after) |
| Client involved in creation | No | Yes |
| Client provides raw material | Not required | Not required either |
| Examples | PDF pattern, ebook, ready-to-print file | Customised pattern, commissioned logo, dress |
And how does that affect your tax declaration?
Whether you’re subject to VAT or not, it’s important to understand this distinction because it influences how you declare your business activity.
- If you sell a ready-to-use product without customisation, you’re in the “sale of goods” category. For micro-entrepreneurs, that falls under the micro-BIC commercial regime.
- If you provide a customised creation (even on a digital medium), it’s a service. That could mean micro-BIC (for artisan/commercial services) or micro-BNC (for intellectual/creative services), depending on the nature of your activity.
This can vary depending on your local tax office, and some cases are handled individually. The key point: always describe your main activity clearly to choose the right regime.
So… product or service? My creative answer
If you sell a file identical for everyone, created in advance and never modified: it’s a digital product.
If you work on demand, modify, adjust or create something for a specific client: it’s a service.
Simple… once you’ve hacked your way through the admin jungle. 😅
Key takeaways (without the headache)
- A PDF sewing pattern in your shop = product
- A customised PDF pattern = service
- An ebook download = product
- A made-to-measure dress = service
And most importantly: just because it’s digital doesn’t mean it’s automatically a service.
Want to go further?
I can help you with:
- Writing clear Terms & Conditions (product vs service),
- Drafting precise product listings,
- Or simply answering your questions as a creative entrepreneur (a little lost in the admin maze 😅).